Trade unions are calling for exemptions for Ukraine regarding the application of the SWAM environmental levy
The Trade Union of Metallurgists and Miners of Ukraine (PMGU) has issued an urgent appeal to the government and international partners to review the terms for implementing the European Cross-Border Carbon Adjustment Mechanism (CBA).
The introduction of this mechanism under current conditions threatens to bring strategic industrial capacity to a complete halt and lead to mass layoffs of workers in the sector.
Corresponding appeals were sent to key officials, including Prime Minister Yulia Svyrydenko, National Security and Defense Council Secretary Rustem Umerov, and EU Ambassador to Ukraine Kateryna Maternova.
The authors of the letters emphasize that Ukrainian industry is currently operating under extreme conditions of war, with constant destruction of the power grid and industrial infrastructure.
Although in peacetime the SVA is an effective tool of EU climate policy, it now creates insurmountable barriers for Ukrainian exporters.
Domestic manufacturers simply lack the financial resilience needed to quickly adapt to new environmental standards and pay additional duties.
A critical situation is already unfolding at one of the industry’s largest enterprises—ArcelorMittal Kryvyi Rih.
Due to rising production costs and the implementation of the EUTL, steel exports could be cut in half, which effectively amounts to half of the plant’s annual production volume.
The crisis is significantly exacerbated by ongoing problems with energy supply and the rapid rise in electricity tariffs for industry.
This has already led to the forced shutdown of AMKR’s subsidiary, Casting and Mechanical Plant LLC, which has sent a worrying signal to the entire region.
As a reminder, the railway workers’ union is asking the Rada to provide additional funding of 8 billion UAH to Ukrzaliznytsia.
Additionally, the German trade union has warned of the risk of large-scale power outages.
